Jones Soda Shares Sink on 4Q Loss

Shares dropped $1.45, or 33.2 percent, to $2.90 in midday trading. Earlier in the day, the shares fell to $2.65 their lowest point since 2004. In the past 52 weeks, the stock has traded between $4.30 and $32.60.

The latest drop came after the company said it swung to a loss of 39 cents per share, or 18 cents per share excluding a valuation allowance. Analysts polled by Thomson Financial expected a loss of 3 cents per share.

The company also reported its revenue fell 41 percent, partly due to higher slotting fees fees charged by retailers to place products on shelves and promotional allowances.

ThinkEquity Partners analyst Suzanne B. Price downgraded the stock to "Sell" from "Source of Funds," saying in a note to investors she is concerned about the company's ability to grow sales while reducing spending.

Stifel Nicolaus analyst Mark Astrachan said in an analyst note he was most concerned that the company did not sell any cases of cans in the quarter even though it paid far more in slotting fees.

"We believe the increased levels of slotting fees indicate retailers are likely requiring higher levels of support to maintain current shelf space for the can product given the weak performance to date," Astrachan said.

The stock has taken a beating as investors realized the company was unable to meet lofty expectations set near the start of 2007, when Jones Soda announced plans to make its sodas in cans and switch sweeteners from high-fructose corn syrup to pure cane sugar.

The announcement in 2007 coincided with a list of new large-scale retailers that committed to selling the cans, including Wal-Mart, Safeway and Kroger.

But since then, the company has been plagued with delays in making the switch and getting the cans to retailers, resulting in lower-than-expected profit and sales.